Synthetic Dollar Protocol Ethena Surges by More Than 45% This Week Amid Rollout of New Product Offerings

The native token of the synthetic dollar protocol developer Ethena (ENA) surged by more than 45% this week as the project rolled out multiple new products.

Ethena aims to provide a crypto-native solution for money not reliant on traditional banking system infrastructure via a synthetic dollar called USDe.

The protocol also offers a dollar-denominated savings instrument called “the Internet Bond.”

ENA is trading at 0.361 at time of writing, up from around $0.248 one week ago. The 115th-ranked crypto asset by market cap is also up more than 14% in the past 24 hours.

On Tuesday, Ethena announced that its partnership with the Ethereum (ETH) restaking protocol EigenLayer (EIGEN) went live.

Explained Ethena earlier this month,

“We are excited to share that Ethena has partnered with EigenLayer and Ether.fi to introduce USDe as the first dollar-denominated token that can be used as security within its generalized shared security platform.

Expanding restaked collateral to include dollar-denominated underlying assets broadens the potential use cases for Actively Validated Services (AVS) who prefer less volatile collateral. Previously, it was only possible to use ETH-based assets as collateral for staking.”

On Thursday, the synthetic dollar protocol also rolled out UStb, a new stablecoin product fully backed by the asset management giant BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

BUIDL is BlackRock’s first tokenized fund that invests in cash, U.S. Treasury bills and repurchase agreements.

Explains Ethena,

“This will exist as an isolated product separate from USDe offering users and exchange partners a new product with a differentiated risk profile to USDe.”

Generated Image: Midjourney

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